Commercial/Multifamily Originations up 55 Percent to $184.3 Billion, MBA Reports

April 19, 2012

Commercial and multifamily mortgage origination volumes increased 55 percent in 2011, with mortgage bankers reporting $184.3 billion of closed commercial and multifamily loans, according to the Mortgage Bankers Association’s (MBA) 2011 Commercial Real Estate/Multifamily Finance: Annual Origination Volume Summation.

Fannie Mae, Freddie Mac and FHA were collectively the leading investor group for whom loans were originated in 2011, responsible for $57.6 billion of the total. Life insurance companies and pension funds saw the second highest volume, $49.3 billion.

In terms of property types, multifamily properties saw the highest origination volume, $77.4 billion, followed by office properties with $34.4 billion of originations. First liens accounted for 93 percent of the total dollar volume closed.

Lending for retail properties saw the largest percentage increase among the major property types, followed closely by multifamily and industrial properties.

Origination volumes for Fannie Mae, Freddie Mac and FHA each hit new records in 2011. Despite their record volumes, faster growth in multifamily lending by other investors led the GSEs’ market share to decline in 2011. Loans originated for Fannie Mae and Freddie Mac accounted for 57 percent of multifamily volume in 2011, down from 63 percent in 2010 and 85 percent in 2009.

“Commercial mortgage lending continues to rebound from its 2009 lows,” said Jamie Woodwell, MBA’s vice president of commercial real estate research. “Originations for life companies, Fannie Mae, Freddie Mac and FHA were all strong, and banks, commercial mortgage-backed securities (CMBS) issuers and others also saw strong growth. With interest rates still low and stability returning to real estate fundamentals, the rebound is expected to continue in 2012.”

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North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents.